Pound Rallies on Brexit Deal Hopes and Upbeat UK Retail Sales

The  Sterling pound today fell then rallied against the  US dollar to  trade at  breakeven amid investor optimism that the  EU and  UK could sign a  post-Brexit deal soon. The  GBP/USD currency pair today attempted to  extend its 4-day rally boosted by  the  upbeat UK retail sales data and  the  positive investor sentiment that favoured risk assets.
The  GBP/USD currency pair today fell to  a  low of  1.2941 in  the  early Asian market before reversing course and  rallying to  a  high of  1.2999 in  the  initial London session.
The  currency’s pair’s rally from yesterday was boosted by  the  European Commission President Ursula Vond Der Lyen’s comments that she believes a  trade deal between the  EU and  the  UK is possible. The  pair’s rally was hampered by  news that the  British Prime Minister Boris Johnson‘s government was considering another national lockdown to  curb rising coronavirus cases. The  release of  the  upbeat UK retail sales report for  August by  the  Office for  National Statistics also contributed to the pound’s rally. British headline retail sales came in at 0.8%, while core retail sales were 0.6%; both prints beat expectations.
The  greenback’s overall weakness as  tracked by  the  US Dollar Index, which hit a  low of  92.78 today also drove the  pair higher. However, the  cable was unable to  break above the  crucial 1.30 resistance level, which could see it post further gains.
The  cable’s future performance is likely to  be affected by  Brexit news and  the  UoM US consumer sentiment survey.
The GBP/USD currency pair was trading at 1.2980 as at 11:02 GMT, having risen from a low of 1.2941. The GBP/JPY currency pair was trading at 135.43, having fallen from a high of 136.16.
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